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CNBC
02-07-2025
- Automotive
- CNBC
Bank of America says autonomous cars are having their 'ChatGPT' moment. How to play it
The "ChatGPT moment" for autonomous vehicles has finally arrived, according to Bank of America, which sees a trillion-dollar market for the space. The firm detailed a list of stocks to invest in the theme. In a Tuesday report, Bank of America identified more than 200 operational autonomous vehicle projects globally. Fully commercial robotaxis are running in seven cities — including Waymo in Austin , San Francisco and Los Angeles, and Baidu's Apollo Go in Wuhan, China — and 20 more are in progress, according to the firm. "Autonomous vehicles (AVs) are having their ChatGPT moment and are no longer a moonshot," strategist Martyn Briggs said in a note to clients. "The main 'drivers' are breakthroughs in [artificial intelligence] and compute, as well as falling sensor costs, enabling rapid commercial deployment," he said. "On top come an increasingly favourable regulatory backdrop and a US-China 'car race.'" Briggs estimated that cars represent the largest addressable robotaxi market, worth $700 billion by 2040. However, the total market rises to $1.2 trillion by the same year when accounting for trucks, freight, logistics, public transport and agriculture. Stocks behind the brains and bodies of AVs Several companies — including rideshare platforms, original equipment makers, software developers, semiconductor companies and sensor makers — stand to benefit from the boom in autonomous vehicles. Bank of America mentioned nearly 20 beneficiaries, including Caterpillar , Uber , Amazon , Nvidia , Aptiv , Baidu and Mobileye , of the trend as commercial deployments ramp up. Nvidia is a name that's been top-of-mind for investors when it comes to AI. The company is forging a new growth runway in autonomous technology, and could be a huge player in software development for OEMs. Analyst Vivek Arya highlighted Nvidia's three-computer solution for AVs: Nvidia DGX for AI model training, its DRIVE AGX complete autonomous driving platform, and Omniverse and Cosmos platforms for physical AI applications. He rates the chip giant a buy. "Nvidia (NVDA) is a pioneer in the accelerated compute space who stands to benefit from AV adoption," Arya said. "As the automotive industry shifts towards electrification and automation, we expect the need for compute power and AI training models on the car presents an incremental opportunity for Nvidia in AVs." Arya's $180 price target on Nvidia suggests upside of 17% from Tuesday's close. Shares are up about 17% in 2025. NVDA 1Y mountain Nvidia stock performance over the past year. Caterpillar is a little-known play on autonomous tech. The company began with offering truck applications for autonomy, but now provides several solutions for mining automation — such as drills, haulers, and underground equipment, Bank of America said. The firm rates the stock a buy, but its price target suggests shares could slip 1.5% from Tuesday's close. Caterpillar is up 9% in 2025. According to analyst Michael Feniger, the company's "formula for success in autonomy" includes its scalable platform on autonomous fleets, as well as its ability to retrofit equipment and fulfill demand for new trucks. Feniger added that Caterpillar receives revenue from its autonomous business through its hardware applications (radar and sensors) and software fees at implementation. "Autonomous implementation likely means fewer trucks operating at higher utilization driving greater parts and service opportunity," he said. Rideshare company Uber is set to benefit from its partnerships with more AV companies, according to Bank of America. "The value of Uber's capability as an AV network partner, fleet operator, and demand generation service for AV providers is supported by a growing number of AV partners (now with 18 partners across AV industry globally, including Waymo in the US)," analyst Justin Post said. "We think over 50% of Uber's value is from mobility, and AV execution will be a key driver for the stock." He rates Uber as a buy. The firm's price target of $97 calls for more than 5% upside from Tuesday's close. Shares of Uber have rallied 52% year to date.
Entrepreneur
12-06-2025
- Automotive
- Entrepreneur
Nvidia CEO Says This Is the Decade of Autonomous Vehicles
At the VivaTech conference in Paris this week, Nvidia revealed its autonomous vehicle development platform for automakers to build self-driving cars. Nvidia CEO Jensen Huang predicts the global autonomous vehicle and robotics industries are set to see significant growth in the next few years. "This is going to be the decade of AV [autonomous vehicles], robotics, autonomous machines," Huang told CNBC in an interview at the VivaTech conference in Paris on Thursday. At VivaTech, Nvidia debuted Nvidia Drive, an autonomous vehicle development platform allowing automakers to build self-driving cars. The company also released Cosmos Predict-2, a new AI model trained on 20,000 hours of real-world driving data, which allows self-driving cars to perform well in challenging weather conditions like fog and rain. Related: Nvidia's CEO Says It No Longer Matters If You Never Learned to Code: 'There's a New Programming Language' Nvidia sells both hardware and software products for autonomous vehicles, including the Nvidia DGX software platform, which trains self-driving cars on different driving scenarios. Nvidia CEO Jensen Huang at the VivaTech trade show. PhotoHuang has predicted growth in the autonomous vehicle market for some time. In January, he said in a keynote at the consumer tech conference CES that "the autonomous vehicle revolution is here." "You're going to see the pace of AV development increasing tremendously over the next several years," he said at the event. Last month, Huang told Yahoo Finance that one day "every single car" will have an autonomous component. Related: Uber CEO Wants to Partner With Tesla on Robotaxis Because 'No One Wants to Compete Against Tesla or Elon' Self-driving cars are becoming more common in the U.S., with Google-owned Waymo providing 250,000 paid robotaxi trips per week in cities like Los Angeles, Phoenix, and Austin. Customers are willing to pay more for the robotaxi experience. According to a report shared with TechCrunch on Thursday, Waymo rides are more expensive than Lyft and Uber rides, but riders pay more anyway. The average price of a Waymo is about $11 more per trip than a Lyft and $9.50 more than an Uber. Uber CEO Dara Khosrowshahi said in January that autonomous vehicles would take over the jobs of human Uber drivers within the next 10 to 20 years. Uber drivers made three billion trips in the first quarter of 2025, a 14% year-over-year growth in monthly active customers. Related: Uber's CEO Says Drivers Have About 10 Years Left Before They Will Be Replaced Nvidia mentioned in its latest financial results last month that revenue from its automotive division was $329 million, up 11% year-over-year due to its self-driving technology. Nvidia's Chief Financial Officer, Colette Kress, said in a conference call with analysts that Chinese EV maker Xiaomi built its SU7 sedan on Nvidia's self-driving platform. Nvidia is one of the most valuable companies in the world at the time of writing, second only to Microsoft, with a market cap of over $3.5 trillion.
